From its inception, Jacobs & Company has had an investment philosophy of investing for the long-term, with a goal of steady growth over time. A stable capital base is an important premise of such growth, so the firm's investment strategies are designed to minimize the risk of loss of the client's capital.
Initially, the investment strategies of Jacobs & Company emphasized current income and preservation of capital through investments in U.S. government agency mortgage-backed securities (GNMAs). In response to the investment objectives of the firm's clients, these strategies were expanded to include investments in stocks of large U.S. companies, combined with the use of covered call options to supplement income and to provide protection to the clients' portfolios during consolidations or corrections in the equity markets. Today, the principal investment strategy of the firm is a combination of these two approaches a balanced approach to income and capital growth, with a view to preservation of capital. This strategy emphasizes stock investments in large U.S. companies, fixed-income investments in GNMAs and, for additional income and as a hedge against volatility in the stocks in the portfolio, the writing of covered call options on those stock holdings.
